British Shop Prices Fall in December, More Retail Deflation Seen – BRC

Shop prices in Britain fell in December for the 32nd consecutive month, the British Retail Consortium said on Wednesday, the latest sign that inflation is likely to remain tame.

The BRC said prices in British shops eased by 2 percent over the 12 months to December, compared with a 2.1 percent fall in November that was jointly the steepest on record.

Non-food prices fell 3 percent year-on-year in December, a slightly smaller decline than November’s, as clothing and footwear prices continued to slip.

Against a backdrop of weak global commodities prices, food prices eased 0.3 percent.

“We can expect the current levels of deflation across the retail industry to continue for the first half of 2016,” Mike Watkins, head of retail and business insight at data company Nielsen, which collates the survey, said.

“After the unseasonably mild autumn and early winter, many non-food retailers will use price cuts and targeted promotions early in the year.”

Reuters

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